As competition becomes driven by knowledge, work and speed, the pressures on corporations are changing and growing. Success in the new, knowledge-based economy requires innovation, knowledge creation and application, fast cycle time, customer intimacy, talent retention, and adaptability. In response to the critical need of organizations to gain these strengths, companies are turning to online virtual communities for external (Customer Community) and internal (Corporate Community) purposes. Customer Communities combine quantitative and qualitative feedback needed to develop and leverage customer insights, market trends, and to forge stronger customer relationships. These communities combine and extend the concepts of focus groups and Customer Relationship Management (CRM) and provide a more effective method for capturing these insights and developing customer intimacy. Further, organizations must connect with suppliers and partners for similar purposes. Organizations are exploring online virtual communities as a way to bring market intelligence back into the organization in an “always on” manner.
Corporate Communities combine the strength of communities of practice and knowledge management. A community of practice is composed of professionals in the same discipline who come together to share an informal learning, ad hoc problem-solving, professional networking, and mutual support. Knowledge management is the process of identifying, selecting, and organizing the intellectual capital of a company and presenting that knowledge in a manner that helps all the company's employees comprehend and use that information. The union of these characteristics suggests ways in which employees in one section of a company can communicate what they have learned, for example, during a recent project, to other employees in a different section of the company. A professional learning group provides a powerful, organized setting through which companies can ensure not only the circulation of knowledge but the use of past experience to generate new, creative ideas.
As companies become more global, opening branch offices around the world, it is no longer sufficient for a small group of engineers to share ideas as they gather around the water cooler or the lunch table. It is not enough to share knowledge within a small section of an organization; that information must be communicated to employees throughout the global organization. However, knowledge does not passively diffuse through an organization. Instead, companies are increasingly seeking ways for employees at different company locations to actively share and generate ideas.